NextGen Day

On Monday, the House of Representatives approved a resolution forgiving the PHP58 billion loan that farmers took out to purchase lands under the government’s Comprehensive Agrarian Reform Program (CARP).

House Bill 6336, which seeks to relieve beneficiaries of agrarian reform (ARBs) from the financial burden of repaying loans granted in regard to agricultural land awarded under the CARP, was adopted by the house during the plenary session through a voice vote.

The proposed legislation calls for the forgiveness and cancellation of all unpaid amortization amounts, interest payments, surcharges, and penalties associated with current loans made by ARBs and secured by the CARP or other comparable programs.

The Emancipation Patents and Certificates of Land Ownership Award shall be annotated with a Notice of Condonation issued by the Department of Agrarian Reform.

For a period of 10 years following the issuing of the certificate of condonation or certificate of land ownership award, the bill forbids the sale, transfer, or conveyance of awarded lands to another person other than through hereditary succession or as the subject of conversion.

The outstanding balance of the compensation for lands acquired via the voluntary land transfer and direct payment plan shall be paid by the government through the subrogation of the ARBs.

ARBs who have not yet received agricultural land from the CARP will do so without being required to pay an amortization fee.

Estate tax payments on awarded lands to ARBs are free under the proposed law.

With the passage of an executive order (EO) putting a year-long embargo on the payment of land amortization and interest payments, President Ferdinand R. Marcos Jr. has relieved farmers of their debts.

In his State of the Nation Address on July 25, Marcos stated that “a moratorium will offer the farmers the ability to channel their resources in expanding their farms, maximizing their potential to produce, and propelling the growth of our economy.”

Additionally, Marcos urged Congress to enact legislation that will change Section 26 of RA 6657, which is thought to free the ARBs from debt obligations.

“Unpaid amortization and interest on loans made to beneficiaries of the agrarian reform shall be excused,” he stated.

He stated that ARBs who are scheduled to get land under the CARP will do so “without any requirement to pay any amortization.”

All government departments, bureaus, and instrumentalities were required to find agricultural lands that could be given to eligible recipients of the agrarian reform program under EO 75.

There would be a PHP58.125 billion forgiveness of the existing agrarian reform loan, which will benefit about 654,000 people and involve 1.18 million hectares of allocated land.

The CARP aims to help farmers and other ARBs in at least two ways: by making credit available for them to utilize to improve their farming operations and by awarding them land that they will have to pay for over 30 years at an annual interest rate of 6%.

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